American Express Company (NYSE: AXP) shares rose in value in early trading today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at Bank of America Corporation upgraded shares of American Express Company (NYSE: AXP) from Neutral to Buy today. With a rating of Buy on the stock, American Express Company has a 52-week high of $76.55. A number of other analysts have issued reports on the company recently, and the company has earned a consensus one-year price target of $75.96, a decrease compared to the opening price of $76.14. Share prices sometimes get a jump to the upside when analysts upgrade a stock.
Shares of American Express Company (NYSE: AXP) opened at $76.14 yesterday and traded in a range between, $75.53 and $76.18, and last traded at $75.93, which represents a spike of $0.46 over the previous closing price.
American Express Company (NYSE: AXP) currently has a market cap of 69.50B.
American Express Company (NYSE: AXP) Average Daily Trading Volume
The stock’s average daily volume is 4,616,710 shares out of a total float 761,382,000 and some 741,461 shares crossed the trading desk yesterday, 17 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
American Express Company (NYSE: AXP) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, American Express Company (NYSE: AXP) now has a 50-day MA of $73.76 and 200-day MA of $66.61. It has traded in a 52-week range between $50.27 – 76.55 and today’s last price is 0.81%% lower than the 52 week high of $76.55.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings at least 25% or more for a 3 year period.
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